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15 September, 11:41

Which of the following bonds would you prefer to be buying? A) a $10,000 face-value security with a 5 percent coupon selling for $10,000 B) a $10,000 face-value security with a 10 percent coupon selling for $10,000 C) a $10,000 face-value security with a 9 percent coupon selling for $10,000 D) a $10,000 face-value security with a 10 percent coupon selling for $9,000 5

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  1. 15 September, 12:07
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    D

    Explanation:

    You have to calculate each bond Yield and keep the highest:

    A) 5%

    B) 10%

    C) 9%

    D) 11.11%
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